Introduction of Goods and Services Tax (GST) is not merely a tax reform. It’s a complete overhaul of the pre-existing indirect tax regime. This is because it makes way for a simpler indirect tax system and an enhanced compliance. Simplicity in GST regime stems from integration of a host of indirect taxes levied previously. And the enhanced compliance results from digitization brought about in implementing GST. Digitization involves shifting each aspect of procedural compliance online. Each aspect of compliance has been duly automated including application for registration, return filing, or refund processing.
And, to further aid effective implementation of the GST system, penal provisions for law offenders have been laid down. These penalties under GST Penalty are levied to prevent evasion of tax and to punish those who breach the law.